DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)
The Business Organization
LAS for Organization and Management (Grade 11)
Quarter 3 - Week #4
Name: ___________________________________________ Strand: ________________________ Date:
______________
I – Background
Good day, students! Are you doing well? This
Learning Activity Sheet (LAS) was written for you in mind. This
LAS to help you define and identify business organization
II- Learning Competencies:
After going through this LAS, you are expected to:
1. Describe the nature, traits and significance of a business
organization
2. Differentiate the forms of business organizations
3. Analyze the forms and economic roles of business
organizations. (CG code: ABM_AOM11-Ia-b-3)
III- Essential knowledge, concepts and activities
Organizations are more than just the setting for management.
Management is actually created to support and achieve the goals
of organizations. The design and structure of a business
organization influences the management plans and strategies.
Hence, to fully understand management one must have an
extensive understanding of the various forms of organizations.
Schermerhorn, 2011 defines the organization as ‘a social setting
composed of several groups of people who bond and work
together to achieve a common purpose’.
An organization is a collection of people working together to
achieve a common purpose, while a Business Organization is a
collection of people working together to achieve a common
purpose in relation to their organization’s mission, vision, goals
and objectives, according to Cabrera, H.F et.al (2016). Business
organizations are primarily created for profit and some non-profit
organizations have their own unique purpose. Business is defined
as an economic activity of production and distribution of goods
and services.
Characteristics of Business Organizations
The common features of business organizations are:
1. Commercial activity – buying and selling of goods and
services
2. Profit motive – profit is a primary goal
3. Efficient use of resources – minimizing costs of all resources
to maximize profit
4. Continuous activities – business is not a one-time activity,
repeated selling or service
5. Creative and Dynamic – changing and makes use of
innovations
Forms of Business Organizations
The form of a business organization depends on its purpose,
nature of its operations and resources but with the changes in
society and business organizations also evolve into more varied
forms. Business organization may be categorized as traditional
(simple, functional, divisional, profit and non-profit) or as open
and flexible in form according to Rob bins and Coulter (2009)
 Limited Partnership – is formed when one of the partners
contributes his assets and capital to the company but his
share in the liability is only limited up to his contributed
There are ways to differentiate the various forms of business
organizations and these are:
A. According to structure the forms of business organizations
are:
Simple business organization – an organization with few
departments, centralized authority, wide span of control and few
formal rules and regulations. Usually sole proprietorship or single-
owned businesses are of this form since they have few personnel.
This organization is easy to manage given its few members hence the
need for only few rules. If you will create a new business or startup
this is the type of of organization you will most likely adopt.
Functional business organization – an organization where the
members or personnel are grouped together based on similar or
related specialized duties. Functional managers are assigned in
departments based also on specialization such as production
managers, financial managers, department heads
Divisional business organization – an organization made up of
separate business units that are semi-autonomous and usually with a
division head responsible for the performance of the unit, division or
branch. Each division has its own functional organization and general
manager
A. According to purpose and roles the forms of business
organizations are:
Profit business organization – are organizations designed primarily
for profit and achieve its mission, vision and goals aligned to its
income-generating and profit-making activities. The success or
failure of this organization depends on the generation of revenues and
minimizing of costs.
Four Types of Profit Organization
1. Sole or Single Proprietorship – a business owned by one person
only. This business is characterized by unlimited liability of the
owner who is the sole provider of funds and settler of debt. It is the
easiest and quickest to put up but also disappears the fastest due to
limited funds.
A single proprietorship contributes to the economy through the
income of the business reflected in the personal income of the
business owner as well as the goods and services the business
provides. The business name is registered with the DTI and the
business license is usually processed with the local government unit
or municipality. In the Philippines a common sole proprietorship is
the sari-sari store.
2. Partnership – a business owned by two or more persons. There
are different types of partnership such as general partnership, limited
partnership, and industrial partnership.
 General Partnership – is formed when the partners have agreed
to contribute in the asset, capital and debts of the company as
stated in their articles of partnership.
Matrix organization - organizations where specialists from various
department work together in one or more projects. Income generating
Prepared by: Mr. Roseller T. Cabasag – Teacher II
 DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)
capital. projects, marketing, and multi-product development use the matrix
 Industrial Partnership – is formed when one of the partners business structures
contributes his skills and services, and not monetary value.
Virtual business organizations – organizations that communicates
Similar to the role of a single proprietorship, the income of the and do most of their operations online. Most online businesses have a
partnership contributes to the economy through the income of the virtual organizational Structure. Online businesses get support from
business partners. A partnership is registered with the Securities or partner with other companies for the marketing and delivery of
and Exchange Commission (SEC). their products and services.

3. Cooperative – a business where ownership is equally shared IV. Assessment

among members. A cooperative is a people-centered business
enterprise that are owned, controlled and run by its members and Directions: Read each item carefully. Choose the letter of the best
abide by the cooperative principles of open and voluntary answer. Write the letter of the correct answer on the space provided.
membership, equal shares of capital, democratic control,
independence, education and training, cooperation and social _____1. Which of the following is described as a collection of people
concern. working together to achieve a common purpose in relation to the
company vision, mission, and objectives?
Cooperatives are popular in developing nations as it encourages A. Business C. Business organization
more members to join due to the small investments needed and B. Business enterprise D. Institution
democratic practices, employment, free trainings and education
enjoyed by its member. The Cooperative Development Authority _____2. Which of the following is an economic activity concerned
is in charge of the registration and control of cooperatives. An with the production and distribution of goods and services?
example of a cooperative is the People’s Officials, Employees A. Business C. Business organization
and Community – Multi-purpose Cooperative (POEMCO). B. Business enterprise D. Institution
4. Corporation – a business organization where ownership is _____3. Which of the following is a primary motive of a business
through shares of stock, and the returns of stocks are paid through organization?
dividends. A corporation is a separate legal entity which means A. Change C. Profit
that its function similar to individuals having the ability to take B. Efficiency D. Service
out loans, create business agreements and pay taxes and in so
doing creates limited liability for its shareholders (owners of _____4. Which of the following is a profit business organization
shares of stock). The shareholders of a corporation are not liable owned by one person?
for any costs, lawsuits, or other obligations of the business. A A. Cooperative C. Partnership
corporation may be owned by individuals or by a government and B. Corporation D. Sole Proprietorship
is registered with the Securities and Exchange Commission
(SEC). _____5. Which of the following is a profit business organization
owned by two or more persons?
Non-profit organization – are organizations that provide service A. Cooperative C. Partnership
to clients without expecting monetary gains or financial benefits. B. Corporation D. Sole Proprietorship
The success or failure of this organization is dependent on the
evaluation of their clientele and their impact on society. _____6. What form of a business organization is usually common in
sales?
Government organizations – are organizations that are created A. Matrix C. Team
and mandated by law to provide service to citizens in general. B. Simple D. Virtual
Local government units or LGUs provide service to people
within their municipality only while national government _____7. In which agency must one register a cooperative?
agencies serve all citizens in general. A. Cooperative Development Authority
B. Department of Trade and Industry
Non-government organizations – are organizations that serve a C. Local Government Unit
particular group of target beneficiaries. This include civil society D. Security and Exchange Commission
associations, corporate foundations, research and educational
institutions _____8. In what agency must one register a sole proprietorship
A. Cooperative Development Authority
Open or Flexible business organization – are organizations B. Department of Trade and Industry
with a specialized or unique purpose and are formed to meet the C. Local Government Unit
demands of the changing work environment. D. Security and Exchange Commission
Other Forms of Organizations _____9. The following are the types of partnership EXCEPT:
A. General B. Limited C. Industrial D. Maximum
Team business organization – organizations usually made up
of work groups or teams. This form is common in sales or when a _____10. Which of the following is NOT a characteristic of a
wider area needs to be covered by the business. business organization?
A. Commercial activity C. Efficient use or resources
B. Creative and dynamic D. Non-profit motive

Prepared by: Mr. Roseller T. Cabasag – Teacher II

 DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

IV. Learning Activities

Directions: You have to fill in the graphic organizer chart to
generalize the thing about the topic. Use a separate sheet of
paper (10 points)

B. Disseminator, monitor, spokesperson

C. Entrepreneur, negotiator, resource allocator
D. Monitor, negotiator, resource allocator

ANSWER KEY

Prepared by: Mr. Roseller T. Cabasag – Teacher II

 DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)
1. A
2. C
3. B
4. D
5. D
6. B
7. C
8. A
9. B
10. B

Prepared by: Mr. Roseller T. Cabasag – Teacher II

DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

Prepared by: Mr. Roseller T. Cabasag – Teacher II

DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

Prepared by: Mr. Roseller T. Cabasag – Teacher II

DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

Prepared by: Mr. Roseller T. Cabasag – Teacher II

DepEd-Polanco NHS: Senior High School Learning Activity Sheet (LAS)

Prepared by: Mr. Roseller T. Cabasag – Teacher II